Redkey Gordon P.C.tag:typepad.com,2003:weblog-1237861517084976752016-03-25T10:00:00-07:00Redkey Gordon P.C. is a full-service Estate Planning & Personal Injury law practice. They write about wills, trusts, probate law, Medicaid planning, accident cases, and more! TypePadAnother Way to Ensure That You Are Never Forgottentag:typepad.com,2003:post-6a01b7c6d95eca970b01bb08c73c51970d2016-03-25T10:00:00-07:002016-03-25T10:00:00-07:00Most people don't know that their beneficiary designations trump their wills. Failing to update your beneficiaries will hand assets over to people from your past, like ex-spouses and people who you might not have thought about for decades. If you don't remember who your beneficiaries are for your investment accounts,...Redkey Gordon P.C.

Most people don't know that their beneficiary designations trump their wills. Failing to update your beneficiaries will hand assets over to people from your past, like ex-spouses and people who you might not have thought about for decades.

If you don't remember who your beneficiaries are for your investment accounts, insurance policies or annuity contracts, then you need to carve out some time to go through your accounts and see who you named as your beneficiary. If it's been a while, you may be in for a rude awakening.

Beneficiary designations allow certain assets owned by an individual to transfer efficiently at her or his passing. These include retirement accounts like IRAs, Roth IRAs, 401(k)s, 403(b)s, 457(b)s, and pensions, as well as life insurance death benefits and the residual value of annuities.

These types of assets with designated beneficiaries will transfer automatically, despite anything written to the contrary in a person's will or trust. These assets with designated beneficiaries are also excluded from the decedent's probate estate unless the "estate" is the designated beneficiary.

Owners can designate both primary and contingent beneficiaries. The primary beneficiary inherits the asset, but if he or she dies before the owner, then the contingent beneficiary will be the new owner. If you don't name a contingent beneficiary, the asset will go into your general estate for distribution, which is what you're trying to avoid in the first place by naming beneficiaries.

There are no restrictions on how many beneficiaries can be designated to inherit an asset. You can split your 401(k) 50-50 if you have two children, or 60-40 or 90-10. You can also name a charity as your beneficiary, which can be a nice way to transfer assets to a special organization at your passing. Charities don't pay income tax, so they would get 100% of the value of the asset. If an individual inherits this asset, he or she will be liable for income tax right away or as funds are distributed.

A trust can also be designated as beneficiary to provide control over the asset to someone other than the inheritors. Many times it's used when minor children or individuals with disabilities are to be the ultimate beneficiaries. You should work with an estate planning attorney if you go this route, as the tax and distribution rules are complex.

Review your current beneficiary designations now to be sure they reflect your desires. You also should look at them whenever life circumstances change, like a marriage, birth, divorce, or death. You can change a beneficiary designation at any time.

Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney can help you make sure that your beneficiary designations align with your estate plan. For instance, if one child is the sole beneficiary of a million dollar investment account, you may wish to leave assets that are governed by your will to another heir.

The Tough Talk with Parents: It's Not About the Birds and Beestag:typepad.com,2003:post-6a01b7c6d95eca970b01b8d1ace038970c2016-03-24T10:00:00-07:002016-03-24T10:00:00-07:00Frank discussions with your parents take place at different stages of your life. Some families discuss the "facts of life," while others talk about drug use and safety. At this point in your parents' lives, you may be discussing their eventual demise: perhaps the hardest conversation of all. You might...Redkey Gordon P.C.

Frank discussions with your parents take place at different stages of your life. Some families discuss the "facts of life," while others talk about drug use and safety. At this point in your parents' lives, you may be discussing their eventual demise: perhaps the hardest conversation of all.

You might be surprised to learn that your elderly or aging parents are more open to discussing their final wishes and estate planning than you, their adult child. If they have already begun the estate planning process, they have come to terms with their own mortality—or are in the process of doing so. Having these discussions with your parents in advance will provide you with practical information. They will take comfort in knowing that you are prepared for the future.

You will be very appreciative after they pass away for the opportunity you had to ask them the questions that will help you to understand their estate and their wishes.

Spot the clues. Mentioning that your parent wants to pay for his or her funeral in advance may mean he or she wants to talk about end-of-life issues. Your parent may take great comfort in having you fully aware of his or her plans. So if your parent is casually mentioning these subjects, ask if he or she wants to set a time to go over his or her will, discuss his or her thoughts on medical care and talk about other estate planning matters.

Pick a good time to talk. This dialog can be difficult. You should have enough time to cover everything your parent wants to cover. Remember, the most important thing is to have this discussion as soon as you can, as illness and accidents strike without warning. Understanding your parents' wishes while they are around will be easier than relying on paperwork or risking the possibility they may be too ill to convey their wishes.

They're your parents' wishes, not yours. Most of us will have our own preferences when it comes to these topics, but it's important to remember that your parents' wishes might be different than yours. If your parents are well enough mentally and physically to make sound decisions, then you'll need to accept and respect those plans.

Bottom line: this is not an easy conversation, but having it in advance is a far better solution than making big decisions in the face of an emergent crisis. If you need help, call Robert A. Gordon of Redkey Gordon Law Corp, an estate planning attorney that can be of assistance, drawing on his years of experience with families facing similar situations.

How to Know if a Roth IRA Conversion Will Help Your Retirement Plantag:typepad.com,2003:post-6a01b7c6d95eca970b01b7c8229429970b2016-03-23T10:00:00-07:002016-03-23T10:00:00-07:00Rules governing IRAs have always been very complicated, and the seemingly simple Roth IRA is no exception. The option to roll funds from a traditional IRA into a Roth IRA might be a great thing – or it might be an expensive mistake. Know what to do before making a...Redkey Gordon P.C.

Rules governing IRAs have always been very complicated, and the seemingly simple Roth IRA is no exception. The option to roll funds from a traditional IRA into a Roth IRA might be a great thing – or it might be an expensive mistake. Know what to do before making a move.

Not everyone who has a traditional IRA is a good candidate for a Roth IRA conversion, according to The Motley Fool's article, "5 Things to Consider Before Making a Roth IRA Conversion." While every person's situation is different, there are five key elements to consider before making the change to your retirement accounts.

Your tax bracket. These days it's not unusual for retirees to be in a higher tax bracket during retirement. However, many of us have the option of investing in a Roth IRA, which doesn't offer an up-front tax break—but lets you withdraw funds in retirement tax-free. If you think you are going to be in a higher tax bracket when you retire, you might consider converting some or all of your retirement savings to a Roth before you retire. Converting some or all of your traditional IRA money to a Roth IRA will also give you some tax diversification in retirement to hedge against future changes in tax rates and related rules.

Estate planning. One of the great things about a Roth IRA is that it isn't subject to required minimum distributions (RMDs) at age 70½, unlike a traditional IRA, where you must withdraw an IRS-mandated amount annually at that age. Plus, it's subject to income taxes. Roth IRAs can continue to grow tax-free for as long as you live, and if your beneficiary is your spouse, he or she can roll over the account and make the Roth IRA his or her own with the same rules (non-spousal beneficiaries are subject to an RMD, but that distribution isn't taxed). In addition, non-spousal beneficiaries can take the RMDs over their entire life expectancy. This is a terrific benefit for younger beneficiaries like children or grandchildren.

Be ready for the tax hit. The big minus for a Roth IRA conversion is that any funds you roll over will be subject to income tax in the year of the conversion. That means older folks should consider whether they can cover the tax bill and generate enough investment growth to offset the impact. Plus, there may be other considerations—like estate planning—that become more important than "payback" concerns.

College financial aid. If you have college-age children who will be applying for financial aid, you may want to avoid Roth conversions when their aid is calculated. The extra taxable income could affect their eligibility or the amount of aid.

Stock market declines. A drop in the stock market may give you a great opportunity for a Roth IRA conversion and get you more bang for your buck. You will be converting a lower amount and paying less in taxes. If you're thinking about rolling over your traditional IRA, consider taking advantage of the stock market correction by converting a larger portion of your old account, or think of it as another way of "buying low and selling high."

Before you do anything, make sure you understand the tax implications and the impact on other financial events that a Roth conversion will have. Speak with Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney who can help you make this important decision.

Two Kinds of Planning Needed for the Future of the Farm Familytag:typepad.com,2003:post-6a01b7c6d95eca970b01bb08c7363c970d2016-03-22T10:00:00-07:002016-03-22T10:00:00-07:00A farming operation of any size requires considerable planning to achieve the owners' goals for when they have passed, whatever the goals might be. Regardless of the ultimate outcome – passing the farm to the next generation or selling it – creating a plan for the future requires a lot...Redkey Gordon P.C.

A farming operation of any size requires considerable planning to achieve the owners' goals for when they have passed, whatever the goals might be.

Regardless of the ultimate outcome – passing the farm to the next generation or selling it – creating a plan for the future requires a lot of groundwork and the help of an estate planning attorney with experience in family farm matters, according to The High Plains/Midwest Ag Journal's article, "Planning for the future of your farm operation."

A business plan can be an important tool in estate and succession planning. This is a roadmap for the farm business, and it gives your business direction, helps you make decisions, and can assist in the future.

Make sure that you have the terminology correct. "Estate planning" deals with the disposition of your assets during your lifetime or after your death, while a succession plan is the transitioning of your farm to the next generation or others to ensure the continuation of the business.

If you don't make a plan for the disposal of your assets, the courts in the state where you live will. And that might not be what you want. You need to create an estate and succession plan for your farm so that you are the one who makes those critical decisions about the distribution of your assets and to guide the continuation of the business.

First, call Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate and succession planning attorney. Remember that not all attorneys are well-versed in estate planning. Here are some ideas to produce an effective estate and succession plan that is tailored to your operation.

Get ready to share. Robert A. Gordon will need to know all of the details of your operation, your investments, and your retirement planning. Be open so that he can create the best plan to benefit you, your family, and your assets.

Get ready to open up and talk. Communication is a critical part of the process—one that's often downplayed or overlooked.

Get ready to include everyone who might be a part of your farm's future. This may drag you out of your comfort zone, but everyone who is involved needs to be included in the discussions and plan. That means your spouse, siblings and heirs. You will need to know who wants to continue to be a part of the farm operation and who does not. Include a frank discussion of their own vision for the farm and don't neglect the details. Include conversations about property on the farm and items in the family home, and be prepared for the unexpected.

Famed County Singer's Wife Shares Heartbreaking Journey with Alzheimer'stag:typepad.com,2003:post-6a01b7c6d95eca970b01b7c822927b970b2016-03-21T10:00:00-07:002016-03-21T10:00:00-07:00A loving spouse is almost always the first person to see the signs of Alzheimer's. Kim Campbell has taken on an admirable role to help others benefit from her own experience. Wife of music legend Glen Campbell, Kim thought that her husband's forgetful moments were part of the normal aging...Redkey Gordon P.C.

A loving spouse is almost always the first person to see the signs of Alzheimer's. Kim Campbell has taken on an admirable role to help others benefit from her own experience.

Wife of music legend Glen Campbell, Kim thought that her husband's forgetful moments were part of the normal aging process. Once she realized that his symptoms were not normal, she went to the experts and got the bad but necessary news. In 2011, at age 79, Glen Campbell was diagnosed with Alzheimer's. His farewell tour was planned, and his final performance took place on November 20, 2012. A documentary of his Alzheimer's diagnosis and final tour, Glen Campbell: I'll Be Me, was released in 2014.

Alzheimer's impacts about half of all people over the age of 85 and kills nearly 100,000 Americans each year. It's named for the German doctor Alois Alzheimer, who discovered the distinctive tangles and plaques of the disease in the brain of a female dementia patient in 1906.

Kim Campbell said the disease needs to be approached from a perspective of examining what the patient still can do versus what he or she can't. What can caregivers do to give them comfort and joy?

Glen Campbell now resides in a memory care unit. Kim Campbell said she tried one last time to have her husband at home — "I missed him so much, and I thought, I've just got to try it one more time. (But) I couldn't bathe him without a fight, or change his clothes. Glen's a big man, and he was not easy."

Kim Campbell said she speaks out about Alzheimer's disease to help families because Alzheimer's "is definitely the most feared disease. You lose control of your life. There are identity issues and autonomy issues."

She also shared her perspective on the practical tasks that need to be taken care of and emphasized that estate planning—especially having advance care health directives in place—becomes critical for an Alzheimer's patient and family.

Renee Benson Wins, Is Named Trustee for Her Late Mother's Assetstag:typepad.com,2003:post-6a01b7c6d95eca970b01b8d1a801a9970c2016-03-18T10:00:00-07:002016-03-18T10:00:00-07:00Wealthy families at war continue to populate headlines and provide lessons about legacies, the need for good planning and preparation if trustees become incapacitated. A settlement agreement approved today by a probate court judge in Texas has NFL owner Tom Benson's estranged daughter Renee Benson replacing her billionaire father as...Redkey Gordon P.C.

Wealthy families at war continue to populate headlines and provide lessons about legacies, the need for good planning and preparation if trustees become incapacitated.

The trust, valued at approximately $1 billion, was set up in 1980 after Tom Benson's first wife died—but before he took over as the owner of the NFL New Orleans Saints and the NBA New Orleans Pelicans.

Forbes said the elder Benson has a net worth of about $2.2 billion.

The professional sports teams are included in a separate trust that is also involved in a related court battle in Louisiana.

The assets in the Shirley Benson trust include most of San Antonio's Lone Star Capital Bank, half of five car dealerships, part of a large ranch, a mansion on Lake Tahoe, cash, a private plane and other real estate.

Tom Benson asked that the workers at the car dealerships tied to the trust fund be protected while a "reorganization" is completed. No details were released as to what the reorganization would involve.

There seems to be a fair amount of confusion about the value of the estate—with a court appointed receiver for the trust estimating the value as approaching $1 billion and Renee Benson stating that the value is about a fifth of that.

Good Decisions Today Will Pay Off in the Long Runtag:typepad.com,2003:post-6a01b7c6d95eca970b01b8d1a8016e970c2016-03-17T10:00:00-07:002016-03-17T10:00:00-07:00Experience is often the best teacher. Unfortunately, you rarely get a do-over when it comes to long-term financial decisions. Simple decisions in one time of your life can lead to a world of trouble later on! Let's continue addressing a series of money decisions from Forbes' "10 Financial Choices You'll...Redkey Gordon P.C.

Experience is often the best teacher. Unfortunately, you rarely get a do-over when it comes to long-term financial decisions. Simple decisions in one time of your life can lead to a world of trouble later on!

Let's continue addressing a series of money decisions from Forbes'"10 Financial Choices You'll Regret in 10 Years," regarding financial choices we make in the earlier part of our lives that are surprisingly important—but we don't always see how important they are until it is too late.

Here are the next five decisions:

Trying to be a DIY investor when you haven't a clue what you're doing. Would you try an open heart surgery after watching a few YouTube videos? Of course not. So why would you consider investing by yourself without the help of a professional?

Viewing important insurance policies as being lame. If you passed away today, what kind of shape would you leave your family in? You may need life insurance or disability insurance—and perhaps long-term care insurance if you're over 55 years old. Don't avoid a review of insurance policies that will protect you from financial ruin.

Treating your retirement like a distant second cousin. Saving for retirement is crucial. If you're depending only on Social Security for income, think again and think much harder! You won't be able to maintain the lifestyle you want in retirement with Social Security alone unless you're the most frugal person in the country. Perhaps not the most desirable title to have when trying to enjoy your golden years.

Neglecting important money conversations with your spouse. Want to blow it big time? Go ahead and try to handle all of your financial goals without the input of your spouse. These money decisions should be discussed and agreed upon. It will be worth it, now and in the future.

Not realizing how recurring expenses add up. We take for granted the idea of paying for high cable bills and cell phone plans or financing cars and homes that perhaps are more expensive than necessary. Try calling your cable company and cell phone company to negotiate a lower monthly fee. See if there are other recurring expenses that you can trim, or eliminate altogether.

Privacy Continues to be Author Harper Lee's Watchwordtag:typepad.com,2003:post-6a01b7c6d95eca970b01bb08c2a3a0970d2016-03-16T10:00:00-07:002016-03-16T10:00:00-07:00A very private person, the author's estate plan is as secretive as her life. When the author of "To Kill a Mockingbird" was found to have written another novel, "Go Set a Watchman," there was much mystery about the second book, which generated a fortune. Now the mystery surrounds the...Redkey Gordon P.C.

A very private person, the author's estate plan is as secretive as her life.

When the author of "To Kill a Mockingbird" was found to have written another novel, "Go Set a Watchman," there was much mystery about the second book, which generated a fortune. Now the mystery surrounds the estate of Nelle Harper Lee.

While the value of her estate isn't exactly known, an old lawsuit showed that Lee earned nearly $1.7 million during a six-month period in 2009 — before she announced the release of her second book last year, sales of which were well over $40 million.

Lee once publicly said she had a will, but only her friends and family know for certain. She most likely didn't die without her affairs in order: her father and sister were both practicing lawyers (and her estate has been involved in several lawsuits). But given her reclusive nature, she may have created a trust rather than a will. Wills become public record when they are submitted to probate court, but trusts are continued by a successor trustee and administered accordingly. Some reports say Lee's lawyer is the trustee to her estate, but she also has a nephew.

If Lee did have a will, it cannot be submitted to probate court until five days after her death, and the statute of limitations expires after five years.

In most instances, when an individual dies, there will be an executor designated in the will who helps move the process along. But at this point, with the author, it's pretty much conjecture and speculation.

The reclusive author with the well-prepared estate plan included one directive that we do know about. According to The New York Post, Lee's estate plan specifically directs that there never be another movie made about "Mockingbird."

Married Same-Sex Couples Should Make Sure Their Estate Planning is Up-to-Datetag:typepad.com,2003:post-6a01b7c6d95eca970b01bb08c2a346970d2016-03-15T10:00:00-07:002016-03-15T10:00:00-07:00With its June 2015 decision, the Supreme Court ruled that the Constitution guarantees a right to same-sex marriage and to all of the estate planning advantages that come with that right. Now that the Supreme Court has made its decision on same-sex couples' right to marry, married same-sex couples should...Redkey Gordon P.C.

With its June 2015 decision, the Supreme Court ruled that the Constitution guarantees a right to same-sex marriage and to all of the estate planning advantages that come with that right.

Now that the Supreme Court has made its decision on same-sex couples' right to marry, married same-sex couples should make sure that their estate planning is up-to-date.

When figuring out your income taxes, married same-sex couples are now able to file a joint state tax return, along with the federal joint return, which should make things easier. In addition, Social Security for married same-sex couples has changed, granting both partners access to their spouse's work record and benefits—which could be higher than their own individually.

Now a spouse can leave property to the surviving spouse without paying estate taxes when the first spouse dies, and a married survivor in a same-sex couple also now is under the state's intestacy statute. If a married person dies without a will, the state will typically give more property to the surviving spouse than other family members.

From an estate planning perspective, the process remains the same. When reviewing your assets, it's important to check how accounts are titled and make sure the primary and contingent beneficiaries are correct. If the couple has created a revocable trust, assets must be titled in the trust's name where appropriate and used on the beneficiary lines, according to their estate planning attorney's instructions.

When an IRA passes to a beneficiary, spouses get special tax treatment because of a spousal rollover provision. A surviving spouse of a same-sex married couple can now delay taking distributions until age 70½ and delay IRA distributions over their own lifetime.

Finally, gift taxes previously applied to transfers of assets exceeding $14,000 between same-sex couples, but now the law allows gifts of any amount between them under the unlimited marital deduction.

As a result of the decision in Obergefell v. Hodges, same-sex marriages are legally recognized throughout the United States and same-sex married couples enjoy the same rights and privileges as traditional couples. If you have not updated your estate plan since the decision was announced, speak with Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney to make sure that your own plan is up-to-date and reflects your current status.

Steps You Can Take to Help an Elderly Neighbortag:typepad.com,2003:post-6a01b7c6d95eca970b01b8d1a7fd17970c2016-03-14T10:00:00-07:002016-03-14T10:00:00-07:00What would you do if you thought that an elderly neighbor was being subjected to financial or physical abuse by an adult child or worse, a grandchild? Would you know what to do, or would you hope that it was just your imagination and not act at all? One of...Redkey Gordon P.C.

What would you do if you thought that an elderly neighbor was being subjected to financial or physical abuse by an adult child or worse, a grandchild? Would you know what to do, or would you hope that it was just your imagination and not act at all?

One of the biggest reasons not to act when you suspect elder abuse is taking place is simply not knowing what to do. We know who to call for domestic violence or when a child is being abused. But for an elderly neighbor? The same kind of help and the same anonymity is in place – something most of us just don't know.

The Avery (NC) Journal-Times' recent article, "Safe steps when suspecting elder abuse," discusses suggestions from the North Carolina Division of Aging and Adult Services to put your mind at ease. In that state, people are encouraged to contact the local Adult Protective Services (APS), where a trained social worker will visit the neighbor and assess the situation.

Last year the state saw more than 24,000 reports of suspected abuse, neglect, or exploitation, which indicates that many individuals did do something to help their neighbors. But the national statistics say that only 1-in-5 incidents of elder abuse get reported. As a result, many incidents may have gone without any help.

North Carolina's laws require that anyone having reasonable cause to believe that a disabled adult is in need of protective services must make a report to the local Department of Social Services (DSS) APS unit. DSSs are statutorily mandated to receive information reported and determine if the report satisfies the criteria for evaluation. North Carolina law protects adults with disabilities age 18 and older, but the majority of reports involve those who are 60 years of age and older.

Elder abuse can take many forms, such as financial, physical, emotional or sexual abuse. Cases can even include neglect by a caretaker, abandonment, isolation, abduction or self-neglect—and many involve more than one type of abuse.

Just as people are advised "If you see something, say something," you should take the same approach to the possibility of elder abuse. If you think that something is not right, make a call to your local Adult Protective Services (APS). Sometimes our instincts give us very accurate information, and what seems wrong to you is a clear signal that abuse is taking place. Think of it this way – the worst that will happen is that your elderly neighbor will enjoy an unexpected visit from a caring social worker.